Property Investing: ROI Tax Question
Good evening BP,
Out of curiosity, how much should one save off of the cash flow that one could make off every unit?
For example, say I bought a home and it cash flows $400 a month after all expenses. Am I free to spend that money? Or should I save a portion of that money just in case Uncle Sam’s wants his money when I do my tax returns?
Thank you for the guidance
Most Popular Reply
@Daniel Mendez. I'm not a CPA or tax Accountant, but from a practical rubber meets the road, been there - done that operator, IF POSSIBLE, do not spend any of your proceeds from your rental properties for the first year.
Build it into a nest egg to replace the HVAC, Roof, or some other major system that will need to be replaced or repaired.
After year one, only dip into the nest egg if absolutely needed. Save for your next investment.